Understanding CT’s Electric Rate Increases
Recent rate hikes have led to significant increases in our electric bills, and left Connecticut residents frustrated and confused. This is a rapidly evolving issue, with more info coming to light every day, but the following is a detailed summary of how we got here, and an explanation of both the primary and secondary elements of the rate increase.
In brief:
While supply rates for electricity have dropped, the public benefits portion of the bill saw a sharp increase, reflecting nearly 60% of our total bill
The public benefits portion is primarily comprised of two parts:
77% of this charge stems from the Republican-led Millstone agreement which passed in the CT General Assembly in 2017
The remaining 23% of the fee stems from assistance programs that were created under the bi-partisan Take Back Our Grid Act, and also from the utilities recovering losses from the shutoff moratorium enacted during the Covid pandemic.
This week PURA voted to allow Eversource to collect an additional $3-4/month starting in September, to begin recovering the cost of the state’s electric vehicle charger discount program.
There are multiple solutions being investigated by local leaders to address the collective hardship caused by this increase.
What is The Public Benefits portion of my bill?
This portion of the bill represents two general areas, the Millstone deal and recovery assistance programs.
Republican-led Millstone Deal (77% of the increase)
Supply rates and public benefits are extremely volatile and are not subject to control by utility companies like Eversource and United Illuminating. The rise in the public benefits portion of the bill, however, mostly has to do with a 2017 Republican-led deal that requires Eversource and UI to purchase power from the Millstone power plant at a rate much higher than power generated from natural gas plants. The rate at which the utilities purchase power is set to adjust periodically, and the resulting public benefits charges are reviewed by the Public Utilities Regulatory Authority (PURA). Utilities can “phase in” new charges to reduce the monthly cost to consumers, but Eversource decided to do it all at once. The 10-month cost spike will be in place through May 2025. Notably, PURA Chair Marissa Gillett did try to protect ratepayers by proposing the cost be spread over 22 months but, as the only dissenting voice, was outvoted.
It is also important to note that most of the people pointing blame at a Democratic majority for this increase actually proposed and/or voted in favor of the bill. The concerns that came from those who supported the bill were fair, and included loss of over 1000 jobs, as well as loss of a plant that provides 37% of CT’s energy, but the accusations of blame have become disingenuously politicized and should be clarified. You can find the vote tally from the House HERE.
Recovery from the Shut-off Moratorium: (23% of the increase)
Around 23% of the increase is due to assistance programs like the Low-Income Discount Rate that was championed and voted on almost unanimously by both Republicans and Democrats in the Take Back Our Grid Act (sec 5), in addition to bills that were unpaid by those suffering financial hardship during the COVID moratorium. The moratorium did not preclude people from being on a payment plan, rather, it prevented those that did not pay from being shut off. Since the moratorium has been lifted, utilities are able to shut people off and return to some of the pre-Covid collection practices. To be clear, the moratorium was not debt forgiveness. If a customer did not pay their bill, they are in debt – a debt stays with them and is not forgiven. The utility will work with them to put them on a plan to pay down that debt. As customers pay back their debt from the moratorium, that money will go back to the utilities, and will then will be adjusted in future proceedings - when the money is paid back it will be reflected as a decrease in the public benefits portion of your bill.
Taking Action
The CT House of Representatives plans to evaluate the public benefits charge during the next legislative session that begins in January 2025, and previous action to control electricity costs is just coming online. The bi-partisan Take Back Our Grid Act , passed in 2021, contained some significant reforms, including strengthening PURA's ability to scrutinize and review rate increases and performance-based regulation. In 2023, PA 23-102 became law. This is robust pro-consumer legislation that provides predictability and transparency for rate payers and prohibits utility companies from using electric rates to pay for their lobbying, marketing, and travel/lodging for company executives.
At the federal level, the U.S. Department of Energy has also selected the Power Up New England proposal submitted by Connecticut and its neighboring New England states to receive an award of up to $389 million through the second round of the Bipartisan Infrastructure Law’s competitive Grid Innovation Program (GIP). Power Up features significant investments in regional electric infrastructure that will provide the New England region with access to thousands of megawatts of offshore wind, greater resource diversity, and increased reliability while lowering consumer costs and reducing greenhouse gas emissions.
Candidate Responses
Ceci Maher, Senator for CT’s 26th district, issued a statement objecting to these recent hikes in an August 16th email that you can read HERE. Nick Simmons, candidate for CT’s 36th Senate district, wrote a letter to PURA on August 15th expressing his objections that can be read HERE.
Checking Your Rates
Third-party electricity suppliers can potentially lower costs through reduced rates at EnergizeCT.com. Additionally, the Office of Consumer Counsel offers a guide to understanding the line items on your electricity bill here. While it is recommended that consumers always monitor any third party bills for sudden or unexpected rate increases, many people have had success with these providers.
Available Programs
If you are struggling financially, call your power supplier before missing a payment if possible. Programs are available, including financial hardship designations that provide access to a Low-Income Discount Rate and payment arrangements for customers in need; energy assistance through the state Department of Social Services; negotiated flexible payment arrangements for non-financial hardship customers; and energy efficiency programs offered by utilities to evaluate customers' homes and provide rebates and discounts on needed improvements.
Sources:
CT News Junkie, August 8, Analysis - The Truth About Your Electricity Bill
NBC Connecticut , August 7, Just How Did This Electric Bill Hike Happen in CT?
CT Insider, August 4, CT Electric Bills Go Up Again In September After State Regulators Approve Another Rate Increase